Hyundai’s second-quarter profit falls 16% to $2.64 billion

Hyundai Motor Co. announced on Thursday a 16% year-on-year decline in operating profit for the second quarter, as U.S. tariffs on cars and auto parts began to impact its bottom line.

According to Reuters, Hyundai, which along with its affiliate Kia is the world’s third-largest automaker by sales, posted an operating profit of 3.6 trillion won ($2.64 billion) for the April-June period, compared to 4.28 trillion won in the same period last year.

The South Korean automaker said its annual profit target remains unchanged for now, even after U.S. tariffs cost the company 828 billion won in the second quarter.

It added that while U.S. tariffs pose risks to its operations, the weaker South Korean currency helped mitigate some of the impact. It stated that its revenues increased 7% from the previous year to 48.3 trillion won, compared to analysts’ consensus of 47 trillion won.

The automaker’s shares fell 3.2% after the earnings announcement.